Gateway Cities like Lowell eyed for $1.7B economic boost

BOSTON -- A new report being released by MassINC today recommends pumping $1.7 billion into Gateway Cities, such as Lowell, to help spur economic development.

The report was scheduled to be released at a breakfast hosted by the Gateway Cities Legislative Caucus in Boston, and calls for the investment to be made over the next decade to help the former industrial cities attract new employers, jobs and economic power.

Unlike Boston, which saw steady investment through the real-estate downturn that began in 2007 and is now one of the strongest construction markets in the nation, Gateway Cities have seen new development plummet over the past four years.

Gateway Cities are defined as cities with populations greater than 35,000 but less than 250,000 and median household incomes and rates of college education below the state average. They are eligible for state grants and support for economic and community development. There are 24 cities currently eligible for the program, including, Lawrence, Worcester, Methuen, Springfield and Fitchburg.

The proposed investment could stimulate $3.4 billion in new development in these cities and generate a total reinvestment in Gateway Cities approaching $7 billion, according to the report, which was authored by MassINC's Gateway Cities Innovative Institution. Economic impact analyses suggest this would support approximately 800,000 jobs.

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While specific recommendations are offered, the report is also designed to encourage dialogue on ways to help these cities.

"There is tremendous upside for everyone in the successful redevelopment of Gateway Cities, but it starts with an understanding of the very real market hurdles that need to be overcome before private investors can put their capital to work in these communities," said state Rep. Antonio Cabral, D-New Bedford, who co-chairs the Gateway Cities Legislative Caucus.

In Lowell, the revitalization began 30 years ago with the creation of Lowell National Historical Park, when city leaders began realizing they needed to embrace, not erase the city's history as the birthplace of the Industrial Revolution.

In the last dozen years, the city has seen a transformation and now is home to:

* 190 active artist live/work spaces;

* 250 active artist studios;

* 10 theater or performance spaces;

* 16 museums or galleries;

* Five rehearsal or recording studios.

It is also home to the Lowell Summer Music Series and the 25-year-old Lowell Folk Festival.

Since 2000, 1,500 new housing units have been built, 94 are under construction now, 750 have been permitted, and 157 are in the permitting process. The amount of vacant space renovated and reborn has hit 2.6 million square feet, with another 750,000 square feet currently under construction or permitted.

While the state is supporting several major redevelopment projects, including Lowell's Hamilton Canal Project and Worcester's City Square, these projects have struggled to unfold due to the limitations of the state's existing programs, according to MassINC.

A program designed specifically to ensure that large investments in the state's Gateway Cities catalyze private reinvestment would provide much stronger return on taxpayer dollars, according to the report.

As traditional gateways to the middle class, these cities are home to immigrants, young people and small businesses.

These mill cities are prime locations for development, with access to interstate highways, airports, deep-water ports, and freight and regional passenger rail service, as well as walkable downtowns, river fronts, parks and historic and architecturally distinct buildings.

"Places in the Sunbelt are trying to recreate seemingly historic communities, but we have the authentic thing here in Massachusetts," said Lowell Assistant City Manager Adam Baacke, who is head of the city's Planning and Development Department.

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